Intel Suspends Stock Buyback Amid Coronavirus Pandemic

By Dave Sebastian

Intel Corp. said it is pausing its stock repurchases amid the coronavirus pandemic, citing its uncertainty in length and severity.

The chip maker on Tuesday said the suspension wouldn't affect dividend payments. Intel in October said it would repurchase $20 billion in shares over the next 15 to 18 months. It had repurchased about $7.6 billion in shares in the fourth quarter of 2019, before the suspension.

The company also included an additional set of risk factors in its prospectus supplement filed Monday with the Securities and Exchange Commission to account for the pandemic. Intel said restrictions on access to manufacturing facilities, disruptions of transportation and increased border controls could hurt its customer demand and operations.

"The outbreak has significantly increased economic and demand uncertainty," Intel said. "It is likely that the current outbreak or continued spread of COVID-19 will cause an economic slowdown, and it is possible that it could cause a global recession."

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(END) Dow Jones Newswires

March 24, 2020 08:39 ET (12:39 GMT)

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